Fake breakthrough fake price action
- Indicators
- Rong Yong Yang
- Version: 3.0
- Activations: 5
This indicator is very advanced.
I dare say that there is no second indicator in the world that describes false breakthroughs so accurately.
When the market hits a certain level three times in a row, the market will first break through this level and then return to the inside of the horizontal line. At this time, our indicator will send a signal to alarm that this is a standard fake breakthrough, the index has not been redrawn, the signal has not been delayed, and everything is true and reliable.
But several parameters of this index are very important, it will determine what quality of false breakthroughs you will screen out, so please read and understand them carefully.
The default value of the first parameter is 10, and it represents a high point. As long as it is greater than ten K lines on the left and right, it means that the high point is true, and the low point is the same.
The second parameter is 100. It represents the statistics of the number of qualified high or low points in the last 100 K lines,
and the third parameter is 20, which means that as long as the difference between any three high points is less than 20, then, these three high points form a resistance band with a difference of 20,
and the fourth parameter is also 20, which means that there should be an additional high point, which should break through this resistance band of more than 20 points, if this value is set to minus 20. It will represent the extra high, which is also within the resistance band, and the indicator will become an alarm indicator in the form of a triple top or triple bottom, rather than a false breakthrough indicator. Therefore, the degree of adjustment of each parameter will determine the rigor of this form. Generally speaking, the default set of parameters applies to one-minute or five-minute charts. If they are to be applied to one-hour or daily charts, then these parameters should be adjusted. The values of the first two parameters should be adjusted lower, and the values of the last two parameters should be increased, so as to adapt to a higher level of market fluctuations.
False breakthrough patterns are a very standard and lucrative trading signal. I believe this indicator will help you easily capture these patterns and alert you.
